Indigo Inc's manufacturing overhead budget for the first quarter of 2022 contained the following data. Variable Costs Fixed Costs Indirect materials $14,400 Indirect labor 12,000 Utilities Maintenance 9,600 7,200 Actual variable costs were indirect materials $16,200, indirect labor $11,400, utilities $10,440, and maintenance $6,000. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,960. The actual activity level equaled the budgeted level. Supervisory salaries $43,200 Depreciation 8,400 Property taxes and insurance 9,600 Maintenance. 6,000 All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs) Controllable Costs (b) Prepare a responsibility report for the first quarter. V Budget $ Budget INDIGO INC. Manufacturing Overhead Flexible Budget Report $ Actual $ INDIGO INC. Manufacturing Overhead Responsibility Report Actual D F Un Neith nor I D F Un Neith nor i
Indigo Inc's manufacturing overhead budget for the first quarter of 2022 contained the following data. Variable Costs Fixed Costs Indirect materials $14,400 Indirect labor 12,000 Utilities Maintenance 9,600 7,200 Actual variable costs were indirect materials $16,200, indirect labor $11,400, utilities $10,440, and maintenance $6,000. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,960. The actual activity level equaled the budgeted level. Supervisory salaries $43,200 Depreciation 8,400 Property taxes and insurance 9,600 Maintenance. 6,000 All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs) Controllable Costs (b) Prepare a responsibility report for the first quarter. V Budget $ Budget INDIGO INC. Manufacturing Overhead Flexible Budget Report $ Actual $ INDIGO INC. Manufacturing Overhead Responsibility Report Actual D F Un Neith nor I D F Un Neith nor i
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Indigo Inc's manufacturing overhead budget for the first quarter of 2022 contained the following data.
Variable Costs Fixed Costs
Indirect materials
$14,400
Indirect labor
Utilities
Maintenance
12,000
9,600
7,200
Supervisory salaries
Depreciation
Property taxes and insurance
Maintenance
Actual variable costs were indirect materials $16,200, indirect labor $11,400, utilities $10,440, and maintenance $6,000.
Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,960. The actual activity
level equaled the budgeted level.
Controllable Costs
All costs are considered controllable by the production department manager except for depreciation, and property taxes
and insurance.
(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
$
(b) Prepare a responsibility report for the first quarter.
Budget
$
$43,200
8,400
9,600
6,000
Budget
$
INDIGO INC.
Manufacturing Overhead Flexible Budget Report
Actual
$
INDIGO INC.
Manufacturing Overhead Responsibility Report
Actual
$
D
F
Un
Neith
nor
D
F
Un
Neith
nor l
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